Local Credibility and Authentic Action Drive Multinational Trust

The Trust Paradox: Why Global Brands Must Win Locally to Survive Globally

This conversation with Stephen Kehoe, EVP and Chief Corporate Affairs Officer at PepsiCo, reveals a critical paradox for global enterprises: in an era of increasing insularity and distrust, scale and global reach, once the ultimate competitive advantages, now demand a profound, localized commitment to earn trust. The non-obvious implication is that true global strength is built not from the top down, but from the ground up, community by community. This analysis is essential for leaders in any multinational organization seeking to navigate complex geopolitical landscapes and shifting consumer loyalties. Understanding these dynamics offers a strategic advantage by highlighting how to build enduring credibility where it matters most--locally--thereby solidifying global relevance and resilience.

The Local Echo of Global Brands

The prevailing narrative for multinational corporations has long been one of scale: leverage global operations for efficiency, brand recognition, and market dominance. Yet, the 2024 Edelman Trust Barometer, as discussed by Justin Blake, highlights a significant counter-trend: a growing insularity where people increasingly trust entities closer to home. This creates a fundamental tension for giants like PepsiCo. Stephen Kehoe articulates this challenge by emphasizing that while global capability is a strength, "trust is still earned locally, and really it is one community at a time." This isn't just about adapting marketing messages; it's about fundamentally reorienting how global operations interact with and serve local realities.

The implication here is that a perceived global strength can become a liability if not grounded in local credibility. Kehoe uses India and Egypt as examples, detailing PepsiCo's investments in farmer resilience programs and women's empowerment in agriculture. These aren't just CSR initiatives; they are strategic moves to embed the company within the local fabric, addressing tangible needs like food security and economic opportunity. This approach directly counters the "elite talking to themselves" criticism often leveled at global forums like Davos. By bringing actual farmers to Davos, PepsiCo signals a commitment to listening and learning, rather than simply broadcasting corporate pronouncements.

"Global in capability, but we got to be local in credibility."

-- Stephen Kehoe

This local grounding is crucial for navigating misinformation, a rampant issue, particularly in the food sector. Kehoe’s strategy against false narratives is built on transparency, plain language, and humility. He notes that "misinformation thrives in a vacuum," and the antidote is accessible communication that explains what's in products, why it's there, and acknowledges trade-offs. This directly contrasts with the often complex, jargon-filled corporate communications that can inadvertently fuel suspicion. The emphasis on "honest engagement" over "perfect messaging" suggests a shift in how companies must communicate to build trust. It’s about demonstrating a willingness to be vulnerable and open, rather than projecting an unassailable, top-down authority.

The Humility Dividend: Navigating Certainty and Doubt

The environment at Davos, often characterized by confident pronouncements from CEOs, is contrasted by Kehoe's advocacy for humility. He argues that the spirit of dialogue, central to forums like the World Economic Forum, is undermined by a presentation of absolute certainty. This is where a significant competitive advantage can be found. By acknowledging limitations and focusing on the process of "trying to figure these things out," companies can foster deeper trust.

"Dialogue doesn't mean a set piece of presentations, me talk at you and then you walk away and saying, 'Oh, well, okay, got it.' That's not meant to be the spirit."

-- Stephen Kehoe

This "humility dividend" is particularly potent when companies embrace difficult trade-offs. Kehoe identifies inherent tensions within the food industry--scale versus localization, affordability versus nutrition--and stresses that acknowledging these isn't a weakness but a strength. Pretending these trade-offs don't exist is "simply being dishonest." This candidness, coupled with a clear direction of travel, fosters genuine engagement. It’s about inviting dialogue rather than dictating solutions. This approach directly addresses the insular mindset highlighted by the Trust Barometer, suggesting that personal, face-to-face conversations, even in seemingly elite settings, are key to finding "common shared reality." The effort required to move beyond corporate pronouncements to genuine dialogue is precisely why it yields such significant returns in trust.

From Commitment to Action: The Partnership Imperative

The shift from grand pronouncements to demonstrable action is another critical area where companies can differentiate themselves. Kehoe notes that reputation is no longer solely about what a company says, but "how quickly you can take a decision" and the degree to which communications are "authentic to who you are." This implies that the speed and authenticity of action are paramount. Davos, often seen as a place for announcements, is also a hub for the "hundred meetings taking place a hundred yards away," focused on driving partnerships.

The Trust Barometer's finding on "unusual partnerships" as a mechanism for brokering trust is directly addressed by PepsiCo's engagement with technology companies like Nvidia and Salesforce, and critically, its farmer initiatives. These aren't just about leveraging technology for efficiency; they are about creating localized solutions for climate adaptation and yield improvement. This demonstrates a strategic understanding that addressing complex global challenges requires collaboration across sectors and with those directly impacted. The investment in these "unusual partnerships" is a long-term play, building resilience and credibility that immediate, announcement-driven initiatives cannot match. It signals a commitment to tangible outcomes, not just aspirational statements, creating a durable competitive advantage rooted in shared progress.

Actionable Takeaways

• Prioritize Localized Trust-Building: Dedicate resources to understanding and addressing the specific needs and cultural nuances of each market. This is not merely marketing; it's foundational.
  • Immediate Action: Map key local stakeholders and community needs in your top 3 markets.
• Embrace Humility in Communication: Shift from projecting certainty to demonstrating a willingness to learn and adapt. Acknowledge trade-offs openly.
  • Immediate Action: Review upcoming corporate communications for opportunities to inject candidness about challenges and trade-offs.
• Drive Action Through Partnerships: Actively seek out and cultivate "unusual" collaborations that address real-world problems, moving beyond traditional alliances.
  • Over the next quarter: Identify one potential partnership that bridges your industry with an unexpected sector to address a local challenge.
• Invest in Employee Advocacy: Equip employees with clear, factual information and empower them as trusted voices, recognizing their proximity to communities.
  • Immediate Action: Develop a pilot program to provide employees with accessible, factual information about key company initiatives.
• Counter Misinformation with Transparency: Develop clear, simple language to explain products, processes, and trade-offs, making information accessible and defensible.
  • Over the next 6 months: Overhaul a key section of your corporate website to prioritize plain language and direct answers to common public questions.
• Focus on Tangible Outcomes: Shift emphasis from announcing commitments to demonstrating progress and impact through concrete actions and measurable results.
  • This pays off in 12-18 months: Establish clear, long-term metrics for initiatives that demonstrate sustained impact beyond immediate announcements.
• Facilitate Face-to-Face Dialogue: Recognize the power of personal interaction in bridging divides and fostering understanding, even in a digital age.
  • Immediate Action: Implement a structured approach to internal dialogues where differing perspectives are actively sought and heard.